How are the justices of the U.S. Supreme Court appointed?
A) They are nominated by the President and confirmed by the Senate.
B) They are directly appointed by the President of the United States.
C) They are nominated and confirmed by the Chief Justice of the Supreme Court.
D) They are nominated by the Associate Justices and confirmed by the Chief Justice.
A person’s ownership right in real property is called an ________.
A) eminent domain
B) estate in land
C) easement
D) arraignment
Which of the following is a difference between a deductible clause and coinsurance
clause in insurance policies?
A) Deductible clause requires the insured to pay a specified amount before the proceeds
are payable, while coinsurance clause requires the insured to pay a part of an insured
loss.
B) Deductible clauses require the insured to pay a part of the insured loss, while
coinsurance clauses prevent insurers from being liable if the applicant conceals material
information.
C) Deductible clauses stipulate the risks that are not covered by the insurance policy,
while coinsurance clauses require paying a specified amount to get the insurance
proceeds.
D) Deductible clauses require the insured to pay a part of the insured loss, while
coinsurance clauses require paying a specified amount to get the insurance proceeds.
In which of the following situations involving oral contracts can the Statute of Frauds
be raised?
A) if a written confirmation has not been objected by a party in an oral agreement
B) if the seller of specially manufactured goods has made a commitment for their
procurement
C) if the party against whom enforcement of an oral contract is sought has not admitted
in pleadings in court of such a contract
D) if a contract that requires written confirmation has been agreed orally
Which of the following statements is true about the Federal Arbitration Act (FAA) of
1925?
A) The FAA permits parties to obtain a court order to compel arbitration with an
arbitration agreement.
B) The FAA permits federal courts to hear issues of law that have been decided by an
arbitrator.
C) The FAA provides that arbitration agreements involving commerce are revocable
contracts under ordinary circumstances.
D) Breach of contract cases and tort claims are not candidates for arbitration as per the
FAA.
Which of the following is a similarity between a bearer paper and an order paper?
A) both require a specific payee to be named
B) both require indorsements to be considered negotiable
C) both require delivery to be considered negotiable
D) both can be claimed by whoever presents the instrument for payment
Which of the following terms refers to an unconditional and absolute offer by a
contracting party to perform his or her obligations under a contract?
A) injunction
B) writ of garnishment
C) tender of performance
D) pro forma
Kevin goes to a store to purchase a fully-automatic washing machine. He browses
through several models of washing machines but does not let the salesperson know that
he wants a fully-automatic model. While signing the sales contract, he does not notice
that the model he is purchasing is a semi-automatic machine. After purchase, which of
the following options does Kyle have?
A) Exchange the machine with a fully-automatic one and sue the store if it does not
accept it.
B) Demand a full cash refund from the store for fraud in concealment.
C) Sue the store for its innocent misrepresentation.
D) Keep the semi-automatic washing machine as he made a unilateral mistake.
Article 5 of the UCC governs ________.
A) sales of intangible goods
B) finance leases
C) letters of credit
D) general provisions
The transfer of a negotiable instrument by a person other than the issuer is known as
________.
A) negotiation
B) assignment
C) indorsement
D) insurance
A rule that says that an accountant is liable for negligence to third parties who are
projected users of the client’s financial statements is known as ________.
A) the foreseeability standard
B) the Ultramares doctrine
C) due diligence defense
D) privity of contract
Which of the following is true of the World Wide Web?
A) Only businesses”not individuals”can have their own websites.
B) Individuals need not register with a service provider to access the web.
C) A website can have several online addresses.
D) Each website must have a unique online address.
The plaintiff in a product liability lawsuit has suffered $100,000 worth of damages from
an automobile accident. A defect in manufacture of the plaintiff’s vehicle is found to be
60 percent responsible for the accident, while the plaintiff’s own negligence is 40
percent responsible. Under the doctrine of contributory negligence, how much would
the defendant”the manufacturer of the vehicle”have to pay the plaintiff in damages?
A) $60,000
B) $40,000
C) $100,000
D) The defendant would not have to pay any amount in damages.
Which of the following is true for a franchisee that was terminated-at-will by a
franchisor?
A) The franchisee can only recover damages.
B) The franchisor cannot be held liable for a termination-at-will.
C) The franchisee cannot apply for a franchisee again in the same field of business.
D) The franchisee can sue to recover damages, and the franchise.
A legal procedure by which a secured creditor causes the judicial sale of a secured real
estate property to pay a defaulted loan is known as ________.
A) attachment
B) refinancing
C) land sales contract
D) foreclosure sale
Which of the following parties to a shipping contract bears the risk of loss of goods
during transport?
A) the seller
B) the carrier
C) the buyer
D) the bailee
The term ________ refers to a secured creditor’s repossession of collateral upon a
debtor’s default and selling, leasing, or otherwise disposing of it in a commercially
reasonable manner.
A) repossession
B) disposal of the goods
C) disposition of collateral
D) retention of collateral
A(n) ________ check is a type of check for which a bank agrees in advance to accept
the check when it is presented for payment.
A) certified
B) stale
C) promissory
D) ordinary
________ are ideas that make a franchise successful but that do not qualify for patent or
copyright protection.
A) Trade secrets
B) Trademarks
C) Service marks
D) Franchise agreements
________ refers to a lawsuit wherein the plaintiff from a previous lawsuit becomes the
defendant and vice versa.
A) Slander
B) Trade libel
C) Malicious prosecution
D) Defamation of character
The right of a seller to refuse to send goods to a buyer upon breach of a sales contract
by the buyer or the insolvency of the buyer is known as the ________.
A) right to recover purchase rent
B) right to reclaim goods
C) right to withhold delivery
D) right to dispose of goods
________ is the fraudulent conversion of property by a person to whom that property
was entrusted.
A) Bribery
B) Extortion
C) Embezzlement
D) Forgery
The difference between trademark laws and the Anticybersquatting Consumer
Protection Act is that, the latter ________.
A) requires famous names to be a registered trademark
B) protects nontrademarked names
C) is ineffective against cybersquatters
D) protects generic names
Which of the following is true of liability insurance?
A) It protects the insured’s vehicle from theft and damages due to natural calamities.
B) It protects the driver and passengers of a vehicle who are injured by an uninsured
motorist.
C) It covers the damages caused by the insured to third parties.
D) It covers the insured’s vehicle against damages from causes other than collision.
Which of the following statements is true with regard to the canons of Christian faith?
A) The Code of Canon Law produced in 1917 is followed by all sects of Christianity
today.
B) Protestants are known for their recognition of the authority of the Pope.
C) The Orthodox churches treat their canons more as guidelines than as laws.
D) The canons remain silent on the legal measures guiding marriage or inheritance.
Storel, Inc., a warehouse company, offers storage solutions for businesses. A Storel
warehouse is hired by Trendy Apparels for a large consignment of goods. Trendy
Apparels, however, failed to reclaim the goods from the warehouse, and it also failed to
pay Storel for the expenses related to storage and handling. Which of the following is
true of Storel’s rights to claim the charges?
A) Storel must surrender to goods to Trendy Apparels and sue it for the expenses.
B) Trendy Apparels has no legal obligation to pay for the charges.
C) Storel can sell the goods in possession to cover the expenses.
D) Storel must surrender the goods to the court and wait for the legal proceedings.
A(n) ________ refers to an agreement entered into among members that governs the
affairs and business of the LLC and the relations among members, managers, and the
LLC.
A) certificate of interest
B) article of organization
C) operating agreement
D) article of amendment
________ requires securities offered to the public through the use of the mails or any
facility of interstate commerce to be registered with the SEC by means of a registration
statement and an accompanying prospectus.
A) Section 24 of the Securities Act of 1933
B) Section 12 of the Securities Act of 1933
C) Section 5 of the Securities Act of 1933
D) SEC Rule 506
The International Court of Justice is composed of ________.
A) 15 judges who serve nine-year terms
B) 10 judges who serve five-year terms
C) 9 judges who serve ten-year terms
D) 10 judges who serve twelve-year terms
Which of the following is true of the EEOC?
A) It can seek injunctive relief.
B) Its members are elected from state legislatures.
C) Its jurisdiction is limited to charges of racial discrimination.
D) A person should file a complaint with EEOC after filing a discriminatory lawsuit
against the employer.